It's not enough

This is an excellent resumé of the situation. The only thing I would add is the disappointing behaviors of the Cabal Immortals : Jormyr who likes to play hard-to-get-bitch and Ysal.... well anyone has ever seen her?

Forget the good news: A good backstory, recommandations and a mage kill is not enough: now the two new leaders want you to know the history of the Village. Probably a reaction to the Imm dings in order keep the village true to it's core ideals as you said.

I suppose you have to be young, or think you have plenty of time to loose in life, to enjoy this kind of crap. And when the fun is gone, people just go away. I tried to tell this to Jormyr and Ysal and they never even response to my mail. As you said, this looks like cabal suicide... and it certainly not only players's fault.